NGL Energy Partners Delivers Record-Breaking Performance in Q4 2026: Strong Execution Across Multi-Year Strategy
NGL Energy Partners (NGL) has concluded fiscal year 2026 with a strong finish, highlighted by record performance in its Water Solutions segment. The company's CFO, Brad Cooper, presented the results during the Q4 earnings call on May 28, 2026.
The partnership reported adjusted EBITDA from continuing operations of approximately $660 million for the year, which came in at the high end of their guidance range and represents meaningful growth year-over-year. This growth was driven by the Water Solutions segment, where disposal volumes committed under volume commitments grew from 45% to 53% during the fiscal year.
Cooper noted that NGL's execution across every tenet of its multi-year strategy in fiscal 2026 encapsulates a strong finish to the year. The company closed on the sale of its wholesale propane and rack marketing businesses, positioning itself as a pure-play water company. This move significantly reduced volatility in quarterly reported EBITDA and eliminated swings in working capital.
NGL continued to simplify its capital structure through strategic refinancing and redeemed approximately 285,000 Class D preferred units, reducing its highest cost of capital by nearly half. The redemption represents about 47% of the original amount. Cooper emphasized that the partnership will continue to chip away at the Class Ds with free cash flow and non-core asset sales.
The company also made progress in its Water Solutions segment, where adjusted EBITDA grew by 11%. This growth was driven by accretive growth projects, including the expansion of the LEX2 system. The LEX2 system now has a capacity to transport approximately 560,000 barrels of water per day and can be expanded up to 650,000 barrels.
Cooper expressed confidence in NGL's momentum carrying through to fiscal year 2027, as evidenced by the press release issued earlier this month. He noted that the partnership will utilize the same playbook for fiscal 2027 that was used in fiscal 2026 – executing on accretive growth projects in Water Solutions and continuing to simplify its capital structure.
The company's stock price has validated their investment strategy, with Cooper stating that buying back common units at an attractive price of $5.72 has proven to be a good return on the portfolio. NGL bought 8.7 million common units under this program.
As Cooper put it, 'The momentum we exited with in fiscal 2026 is carrying through to 2027.' With a strong start to fiscal year 2027 already underway and plans to expand the LEX2 system further, NGL Energy Partners is poised for continued success in the coming year."
